TL;DR
- ETF Rebound: Spot Bitcoin ETFs added $145 million in Monday inflows, reinforcing last Friday’s $371 million surge and signaling slowing outflows.
- Investor Behavior: Bitwise reports early Bitcoin holders are not exiting despite volatility, instead taking partial profits while remaining invested as institutional participation grows.
- Market Context: Analysts describe the downturn as Bitcoin’s “weakest bear case,” with no major industry failures and altcoin ETFs also seeing inflows, including $57 million into Ether and $6.3 million into XRP.
Spot Bitcoin ETFs extended their tentative recovery at the start of the week, adding fresh inflows as institutional sentiment showed early signs of stabilizing. After a volatile stretch marked by persistent redemptions, Monday’s $145 million in net inflows suggested that selling pressure may be easing even as Bitcoin hovered near $70,000, according to SoSoValue and CoinGecko.
Institutional Flows Slow Bitcoin ETFs Losses After Weeks of Selling
The latest inflows follow last Friday’s $371 million surge, reinforcing a shift in momentum after weeks of sustained outflows. Although the new capital has not yet offset the prior week’s $318 million in redemptions or the $1.9 billion withdrawn year‑to‑date, analysts at CoinShares highlighted that outflows slowed sharply to $187 million. James Butterfill, head of research at CoinShares, noted that such deceleration has historically signaled potential inflection points for crypto investment products.
Despite the turbulence in Bitcoin ETF flows, early BTC investors appear largely unfazed. Bitwise chief investment officer Matt Hougan said long‑time holders are not exiting the market, even as institutional participation grows. While a small cypherpunk‑leaning minority remains skeptical of large asset managers like BlackRock entering the space, Hougan emphasized that most early adopters are simply taking partial profits after substantial gains rather than abandoning their positions.
Analysts Call the Downturn Bitcoin’s ‘Weakest Bear Case’
Research firm Bernstein described the recent pullback as the “weakest bear case” in Bitcoin’s history, pointing to the absence of major industry failures that typically accompany deeper downturns. With no single catalyst behind the decline, some analysts attribute the volatility to Bitcoin’s increasing institutionalization and concerns that financialization could dilute its scarcity narrative. Still, the broader market structure shows resilience as new institutional buyers continue to enter.
The rebound extended beyond Bitcoin ETFs, with spot altcoin ETFs also posting gains on Monday. Ether products attracted $57 million in inflows, while XRP funds added $6.3 million, according to SoSoValue. The synchronized uptick across multiple crypto ETFs suggests that investor appetite may be gradually returning after a challenging start to the year.
